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Nor'West News: August 16, 2016

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NOR’WEST NEWS Tuesday <strong>August</strong> <strong>16</strong> 20<strong>16</strong> 27<br />

EQC UPDATE KEEPING YOU INFORMED | AUGUST 20<strong>16</strong><br />

The changing shape of EQC<br />

The Earthquake Commission’s work in<br />

Canterbury is entering a new phase as<br />

it settles the final earthquake claims for<br />

the 2010 and 2011 earthquakes, says<br />

EQC Chief Executive, Ian Simpson.<br />

“Over the past few months we’ve been<br />

looking closely at what remains to be<br />

done and we will be carefully matching<br />

the workforce to the work that still needs<br />

completing.<br />

As part of this, EQC has developed a<br />

proposal on how EQC will be organised in<br />

2017 to implement its work in Canterbury,<br />

while continuing its national work.”<br />

EQC began consultation with its staff<br />

this week on a proposed smaller structure<br />

for 2017.<br />

“As we make changes over the next few<br />

months, one thing isn’t changing: we will<br />

retain a presence in Canterbury until we<br />

have met our obligations to our customers.<br />

The proposal is for an organisation with<br />

383 positions from January 2017,” Mr<br />

Simpson said.<br />

The proposals for the new structure impact<br />

the 868 EQC people on fixed term<br />

employment agreements to December<br />

20<strong>16</strong> or on contracts for service.<br />

Mr Simpson says the reduction in staff<br />

numbers had been signalled to staff earlier<br />

this year, with more detail given<br />

at EQC staff update sessions in July.<br />

He was grateful for the professionalism<br />

of EQC staff; continuing to achieve key<br />

milestones for Canterbury customers<br />

during a time of change and personal<br />

challenge.<br />

By the end of the year, EQC’s target<br />

is to have:<br />

• completed all of the approximately<br />

67,900 managed home repairs.<br />

• settled all of the approximately 99,000<br />

residential building claims scheduled for<br />

first-time cash settlements.<br />

• settled all of the more than 187,000<br />

contents claims.<br />

• settled green zone land claims for about<br />

73,000 properties.<br />

• resolved 75% of the remedial requests<br />

we had on our books as at 30 June 20<strong>16</strong><br />

• cash settled 90% of the 3,118 drainage<br />

claims we had received by 30 June<br />

20<strong>16</strong>.<br />

• cash settled the 13,985 damage claims<br />

received following the series of quakes<br />

in Canterbury between February and<br />

June 20<strong>16</strong>.<br />

Mr Simpson says that what remains to be<br />

done in 2017,is to continue resolving<br />

remedial requests on properties where<br />

EQC has managed a repair, and continue<br />

resolving drainage enquiries.<br />

“The level of work left is of a much smaller<br />

scale than the Canterbury Home Repair<br />

Programme was designed for. We need<br />

a smaller, fit-for-purpose approach to finish<br />

the work,” Mr Simpson said.<br />

“By 2017 we will have a new approach for<br />

handling the remaining work, including<br />

remedial requests. We’re working on the<br />

details of this now, including talking to<br />

Fletcher EQR. We hope we will have a<br />

clearer picture around September,”<br />

Mr Simpson said.<br />

As at 31 July 20<strong>16</strong>:<br />

• there were 238 substantive repairs left,<br />

which we aim to have resolved by the<br />

end of the year.<br />

• there were 335 secondary repairs (such<br />

as garages and chimneys) to do.<br />

There is also a range of administrative and<br />

financial tasks to be completed.<br />

“I know it has not been an easy journey for<br />

some EQC Canterbury customers. We<br />

didn’t get everything right. I’m the first to<br />

admit that. But EQC has worked hard to<br />

learn from its mistakes and improve how<br />

we work not just for Canterbury, but for all<br />

New Zealand,” Mr Simpson said.<br />

Outside of Canterbury, EQC needs to be<br />

ready to respond to any future event and<br />

continues negotiating and managing<br />

natural disaster reinsurance for the country.<br />

EQC will also continue settling the 5,000<br />

to 8,000 natural disaster claims it receives<br />

on average every year, funding research to<br />

a tune of about $<strong>16</strong> million annually, and<br />

educating the public about natural hazards<br />

and how to mitigate these.<br />

Remedial requests<br />

EQC has streamlined its process for handling new<br />

remedial requests from customers received from<br />

1 <strong>August</strong>, 20<strong>16</strong>.<br />

EQC Chief Executive, Ian Simpson, says the new process<br />

aims for faster resolution with customers having the<br />

opportunity to provide information upfront and state their<br />

preference for a cash settlement or a managed repair<br />

where remedial work is required.<br />

The changes have been introduced after positive<br />

customer feedback on the process used to manage claims<br />

from the February 20<strong>16</strong> earthquake, where customers had<br />

the opportunity to submit more information upfront to<br />

enable quicker turnaround.<br />

Many customers going through the February 20<strong>16</strong> claims<br />

management process are positive or very positive about<br />

their experience. EQC is now using this approach for new<br />

remedial requests, and customers will be asked to send in<br />

information such as photographs and builders’ quotes.<br />

Although cash settlement will provide a quicker<br />

resolution, it may not suit everyone, Mr Simpson says.<br />

“So if a customer prefers that a contractor do the work,<br />

then EQC will arrange for that to happen. But EQC’s<br />

Community Contact Team and independent customer<br />

advocate groups will be available to support any cashsettled<br />

customers who aren’t confident in sourcing their<br />

own contractors,” he says.<br />

Of the 5,720 open remedial requests, EQC has identified<br />

approximately 1,500 properties that cannot be resolved<br />

through a managed repair before 2017. The new process,<br />

while largely designed for new remedial requests, will be<br />

available to these customers and EQC will be making<br />

contact with them from late <strong>August</strong> to ask if they prefer a<br />

cash settlement or managed repair during 2017.<br />

Customers wanting to discuss remedial requests can<br />

contact EQC by phone 0800 DAMAGE (326 243) or email<br />

info@eqc.govt.nz<br />

Drainage<br />

As at June 30 20<strong>16</strong>, EQC had 3,118 drainage damage<br />

enquiries to be resolved. To ensure timely settlement of<br />

these claims, EQC has introduced a panel of licenced<br />

drain layers to identify earthquake damage.<br />

On settlement, customers get a detailed assessment of<br />

the earthquake damage, a documented repair strategy,<br />

and the costing for the repair. EQC expects to resolve<br />

90% of the drainage claims, lodged by 30 June, in 20<strong>16</strong>.<br />

EQC is concentrating on resolving as many drainage<br />

claims as possible that were received by June, this year.<br />

The claims received after that date will be resolved<br />

next year.<br />

CONTACT EQC AT 0800 DAMAGE (0800 326 243) OR VISIT WWW.EQC.GOVT.NZ

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